Location: Shelby County, IL | Metro: Fayette County, IL
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $700 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,180 |
| 4 Bedrooms | $1,410 |
| 5 Bedrooms | $1,636 |
| 6 Bedrooms | $1,832 |
| 7 Bedrooms | $1,979 |
| 8 Bedrooms | $2,078 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,180 | $171,944 | 0.69% | D |
U.S. Census Bureau data (2024)
The ZIP code 62431, located in Shelby County, IL, is best suited as a cash-flow anchor within a Section 8 portfolio strategy. The Federal Market Rent (FMR) for the Shelby County metro area in fiscal year 2026 is set at $920, while the current market rent stands at $625. This indicates a significant spread of $295 between the FMR and the market rate, ensuring that landlords can secure higher rents through Section 8 vouchers.
The median home value in ZIP 62431 is $165,355, which is relatively low compared to national averages. This suggests that the area is affordable for potential tenants, including those who qualify for Section 8 assistance. Additionally, the median income in the area is $64,904, indicating that there is a stable tenant pool with sufficient earnings to cover utility costs and other living expenses.
With an 8.7% renter share, the majority of the residents in ZIP 62431 are likely homeowners. However, this does not diminish the potential for rental properties. The low median home value and median income suggest that there are individuals who prefer renting due to financial constraints or lifestyle choices. Landlords can leverage this by offering well-maintained rental properties at rates that align with the Section 8 voucher amounts, thus securing steady cash flow.
Furthermore, the data shows a median real estate property tax of $1,721 for housing units with mortgages in 2023, representing approximately 1.9% of the median home value. This relatively low tax burden can enhance the profitability of rental properties in the area, making it an attractive choice for cash-flow-focused investments.
In summary, ZIP 62431 serves as a strong cash-flow anchor in a Section 8 portfolio strategy due to the favorable spread between FMR and market rent, the affordability of the area, and the presence of a stable tenant pool with adequate income levels.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.